Block Surges in After-Hours Trading
The stock prices of fintech company Block, co-founded by former Twitter CEO Jack Dorsey, have experienced a significant surge in after-hours trading. This surge comes after an already impressive third quarter for the company.
Exceeding Expectations
Block’s shares saw a 19% increase in value during after-hours trading, reaching $51.15. This recovery is a relief for SQ holders who had seen the stock price drop below $40 earlier in the week. The company predicts a gross profit of around $7.44 billion for 2023.
Hiked Guidance
Block has revised its guidance, increasing its full-year adjusted EBITDA expectation from $1.5 billion to a range between $1.66 billion and $1.68 billion. Adjusted full-year operating income guidance has also increased from $25 million to a range of $205 million to $225 million. Additionally, the company expects a gross profit of $7.44 billion to $7.46 billion in 2023.
Block’s Q3 Performance
In Q3, Block saw a 24% increase in net revenue compared to the same period last year, reaching $5.62 billion. Bitcoin revenue experienced a substantial 37.5% jump, constituting 43% of Block’s total revenue.
Rising Bitcoin Holdings
Block’s Bitcoin holdings in its corporate treasury have increased and now have a market value of $216 million, surpassing the recorded book value by $114 million.
Upcoming BitKey Wallet Release
The upcoming BitKey project by Block is set to be released soon. The BitKey hardware wallet aims to provide secure management of crypto assets through a multi-key security strategy.
Hot Take: Block’s Strong Position in Fintech and Cryptocurrency Markets
Block’s robust Q3 performance, rising Bitcoin revenue, revised guidance, increasing Bitcoin holdings, and the upcoming release of the BitKey wallet all contribute to the company’s strong position in the fintech and cryptocurrency markets.
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